Yes. You do not need to do anything additional regarding the rollover because the transaction is recognized as a rollover when you report your 1099R. The Distribution Codes deem this as a rollover. The rollover will be reflected in Box 5A in your Form 1040.
To report your Roth IRA contribution, go to:
Codes B and G together report a rollover from the designated Roth account in the 403(b) to a designated Roth account in the 401(k), 403(b), 457(b) or the federal TSP, not to a Roth IRA. If the rollover was indeed to a Roth IRA, you must ask the 403(b) plan to correct the Form 1099-R to have code H, not codes B and G.
The Roth IRA contribution won't show up on your 1040 return. You need to enter it for Turbo Tax to check if you are allowed to contribute that much based on your income.
With the incorrect code in box 7, TurboTax will not record the transfer of basis to your Roth IRAs. Since the result on your tax return is the same either way, it would probably make sense to enter code H into TurboTax instead of code BG so that TurboTax records the transfer of basis correctly.
To clarify, was the rollover reported to you on a 1099R with distribution Code H in Box 7? Also was your 403B funded with after tax dollars or was there pre-taxed dollars included in the amount?
Thanks for your questions, DaveF1006.
The rollover reported on 1099R with distribution codes B and G in Box 7.
Yes, my 403b was funded AFTER tax dollars. The original amount was $19,000. After tax, it was $16,000.
I opened the 403b account and put $16,000 in there. Then, I rolled over $16,000 to Roth IRA within one month.
Please let me know if you have any other questions or if my answers are not clear. Thanks.
Yes. You do not need to do anything additional regarding the rollover because the transaction is recognized as a rollover when you report your 1099R. The Distribution Codes deem this as a rollover. The rollover will be reflected in Box 5A in your Form 1040.
To report your Roth IRA contribution, go to:
Thanks for your quick response and assistance, DaveF1006.
Once I reported Roth IRA contribution, where do I see it on 1040? I want to make sure I enter it correctly.
Thanks.
Codes B and G together report a rollover from the designated Roth account in the 403(b) to a designated Roth account in the 401(k), 403(b), 457(b) or the federal TSP, not to a Roth IRA. If the rollover was indeed to a Roth IRA, you must ask the 403(b) plan to correct the Form 1099-R to have code H, not codes B and G.
Thanks Dmetz. Questions:
1. What would happen if the codes in Box 7 are not corrected?
2. Do I need to wait until the codes in Box 7 are corrected on 1099-R form before filing for the income tax returns?
Thanks.
The Roth IRA contribution won't show up on your 1040 return. You need to enter it for Turbo Tax to check if you are allowed to contribute that much based on your income.
With the incorrect code in box 7, TurboTax will not record the transfer of basis to your Roth IRAs. Since the result on your tax return is the same either way, it would probably make sense to enter code H into TurboTax instead of code BG so that TurboTax records the transfer of basis correctly.